Difference Between 1985 S&L Crisis & 2006 Housing Crisis: Houses not Repaired!

The difference between the 1985 S&L crisis and 2006 housing crisis is that during the S&L crisis, lenders repaired damaged properties to make them safe and salable. Lenders did not do this during the recent recession, and potential buyers were worried of the “unknown”… and mortgages that could repair these homes were not widely available and had higher interest rates. This has led to a glut of homes in need of repair that sit in lender inventories.